Indices closed near day's low; Nifty slipped below 18,100 level, Sensex tanked over 600 points as all sectors end in red

All the major sectors closed negatively, with metals, realty and PSU Banks being the top draggers of the market.  

Market update at 3.30 PM: The broader market witnessed strong profit booking ahead of US FOMC minutes release. Nifty Midcap and Nifty Smallcap witnessed a fall of 1 per cent and 1.24 per cent respectively. NSE Nifty 50 index slipped 1.11 per cent to close below 18,100 level while S&P BSE Sensex tanked 636 points to close near the day’s low. 

All the major sectors closed negatively, with metals, realty and PSU Banks being the top draggers of the market.  

Despite the weakness, Divi’s Laboratories, HDFC Life Insurance and Maruti Suzuki emerged as the top gainers from the Nifty 50 stocks while JSW Steel, Hindalco Industries and Coal India were the top losers.  

Nifty registered a breakdown from its counter trend consolidation pattern on the technical chart. The picture signals bearishness and we can expect further correction in times to come. Meanwhile, global cues shall be in focus as US FOMC minutes are set to be released later in the evening.  

Market update at 12.15 PM: The broader indices have seen strong sell-off from higher levels as investors fled away from risky assets. NSE Nifty 50 index has plunged 0.94 per cent to trade below 18,100 levels while Sensex has tanked nearly 600 points. Nifty Midcap and Nifty Smallcap have plummeted 1.25 per cent each.   

Apart from fertilizers stocks which have seen good buying interest, all other sectors trade negatively. India VIX has surged over 7 per cent amidst rising volatility.   

The market breadth is poor as evident from the advance decline ratio which stands at 524:1,472, meaning that nearly 3 stocks are declining for every 1 stock rising.   

18,000 level happens to be a strong support level for Nifty and any fall below this level can trigger fresh short positions. 

Market update at 10 AM: Indices have witnessed sharp sell-off in the first hour of the trade. NSE Nifty 50 index has slipped half a per cent to trade below 18,200 levels while Sensex has tanked over 300 points so far. Nifty Midcap and Nifty Smallcap have plunged 1 per cent.  

All sectoral indices have turned negative, with Metal, PSU banks and realty indices have plunged over 1 per cent. India VIX has surged over 3 per cent amidst such volatility.  

Market update at 9.30 AM: Indices have been trading on a flat note amid volatility. NSE Nifty 50 and S&P BSE Sensex are trading mixed while midcap and Smallcap indices are slightly weak.

Banks are the frontrunners in supporting the market while metals and realty stocks have taken a hit. India VIX trades flat at 14.40 level.

Pre-market update: The Wall Street indices ended a volatile session on a weaker note as investors' sentiment remained muted ahead of FOMC minutes release. Dow Jones ended lower by 10 points while the tech-heavy Nasdaq slipped three fourth quarters. With this, the Asian markets have opened on a cautious note and SGX Nifty indicates a gap-down opening of about 60 points for Nifty.
Oil prices plunged over 3 per cent amid recession fears and rising COVID cases in China. Brent crude currently trades below USD 83 per barrel.
In the last trading session, the FIIs sold to the tune of Rs 628 crore while the DIIs bought shares worth Rs 350 crore.
Nifty is expected to open around 18,200 levels and the first hour of price action shall be keenly watched.